Toncoin (TON) Bulls Aim to Stop the Telegram Coin from Going Underwater
beincrypto.com 02 September 2024 19:00, UTC Toncoin (TON), the native cryptocurrency of The Open Network, has experienced a challenging few weeks, with its price dropping 15% over the last 30 days to $5.21. This decline has resulted in unrealized losses for many short-term holders.
However, these same holders could play a crucial role in TON’s potential recovery, as they may seek to capitalize on future price rebounds.
The Market Begins to Work Toncoin’s Bounce
On September 2, IntoTheBlock data revealed a 53% hike in the number of traders. Traders, in this context, represent addresses that have been holding the token for the last 30 days.
There is also a 20% increase in the number of Cruisers — a terminology used to describe addresses that accumulated between the last 30 and 365 days. Long-term holders, however, saw only a slight increase.
Typically, a rise in short-term holders suggests strong confidence in price recovery. If this trend continues, TON may see reduced selling pressure, which could improve its chances of bouncing back from recent lows.
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The daily chart indicates that the Balance of Power (BoP), a technical tool that measures the market strength of buyers versus sellers, supports a potential price rebound for Toncoin.
A higher BoP reading reflects increased buying pressure, while a drop suggests that sellers are in control and a price decline may follow. Currently, the BoP has spiked, indicating that Toncoin’s price could be set for a rebound.
TON Price Prediction: Hopes Not Yet Dashed
According to the daily chart, TON is currently trading around the $5.23 region, which previously led to a rally and now serves as a crucial demand zone, signaling a potential buy opportunity. However, for this bullish potential to be confirmed, other indicators like the Relative Strength Index (RSI) are needed.
As of now, the RSI indicates that momentum remains uncertain. If buyers return and start purchasing the dip, Toncoin could see a 10% increase, pushing it toward $5.76, but it may face resistance around $5.55.
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If TON breaks above $5.55, it could validate a run toward $5.76. However, if the token fails to surpass $5.55, it might drop below $5, with the next support level around $4.86.
